It is as prudent for ICEFAT members to review the insurance limits and protective language contained in their shipping documents as it is for our clients to understand what these limits mean to them as consumers.

An Airway Bill, or trucking bill-of-lading, becomes a legally binding contract between your client, your company and the consignee – the moment your employee signs it. When an ICEFAT company picks up a work of art, or an exhibition from a client, it becomes responsible for the custody of those artworks under the terms of it’s bill-of-lading contract – until the consignee signs for the safe delivery.

VALUE OF SHIPPING

For this reason it is very important to specifically state your limits of liability in a prominent location on the BOL. An example of the language that could be used:

“Unless the customer specifically requests insurance coverage and states the value of the shipment, the agreed or declared value of this property is stated by the owner to not exceed 60 cents per pound per object during transportation.” (Have your attorney write limits of liability language in accordance with the prevailing laws of your country).

If your client chooses to state the value of the shipment and wants it in writing on the shipping documents, you will then become fully responsible for that value. However, you also have the option of charging your client a premium to cover the costs of the insurance coverage.

SPECIFIC VALUE LIMIT

Even when the client refuses insurance coverage, and does not declare a value, you could still be held responsible for any losses -- unless you have clearly stated otherwise in writing. Be aware however that simply declaring that your company will not be responsible for any damage or losses may still not be enough to prevent legal trouble.

What you should do is state a specific value limit (ie. 60 cents per pound) on your BOL. As soon as your client signs your shipping documents he has agreed to that value limit in the eyes of the law.

Alternatively the client can purchase insurance coverage from you – both being choices that will protect your company. Having your limits of liability clearly stated on your documents will prevent your company from suffering expensive litigation in the event any artworks are lost or damaged. It also will protect the ICEFAT agents you use to handle customs and delivery to your consignees.

BRYAN COOKE